Description

Foreign Direct Investment (“FDI”) in Ethiopian agriculture has increased significantly in the last few years. This is attributable to the increasing interest of transnational companies in land investments, as well as the investor-friendly environment developed by the Ethiopian government through multiple reviews of national policy and legal frameworks. The flow of investment and the acquisition of land by foreign investors pose both opportunities and threats for the country; hence, it is important for the Ethiopian government to devise and implement policy frameworks that maximize the opportunities and minimize the risks.

Foreign Direct Investment (“FDI”) in Ethiopian agriculture has increased significantly in the last few years. This is attributable to the increasing interest of transnational companies in land investments, as well as the investor-friendly environment developed by the Ethiopian government through multiple reviews of national policy and legal frameworks. The flow of investment and the acquisition of land by foreign investors pose both opportunities and threats for the country; hence, it is important for the Ethiopian government to devise and implement policy frameworks that maximize the opportunities and minimize the risks.

This article aims to critically analyse the effectiveness of Ethiopia’s land and investment laws in safeguarding rural communities from the risks of agricultural FDI, with special attention to the increasing demand of transnational companies to invest in farmlands of developing countries.